Members: , Topics: Date: Tuesday 26th of May 2020 at 11:52:pm

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F.G Bemoans Unused N181bn Paid to GenCos for Electricity

The Federal Government has said that it paid a total of N181 billion to five generation companies (GenCos) for electricity not used by Nigerians.

The government made the disclosure through the managing director and chief executive officer of the Nigerian Bulk Electricity Trading Plc (NBET), Marilyn Amobi, Leadership reports. also gathers that she stated at the weekend in Abuja that the government paid the money based on the contract the GenCos had with it, but noted that the electricity was not used by Nigerians.

Amobi briefed the minister of power, Engineer Sale Mamman and the minister of state for power, Jedi Agba, when the duo assumed office at the ministry.

She said: “One thing that you may hear of again is the question around undelivered capacity payment that we have made. In summary, since the transition electricity market started as at the last payment last month, NBET has bought a total of N181 billion which we paid primarily to five distribution companies based on their contracts with us, but for electricity Nigerians did not use.

“Within this context and under the N701 billion (the federal government’s Payment Assurance Guarantee intervention of 2017) which was borrowed at five per cent interest, we have paid the sum of N181 billion for electricity we did not use."

Meanwhile, previously reported that the Nigerian Electricity Regulatory Commission (NERC) said the planned increase in tariff was done through constitution with Electricity Distribution Companies (DisCos) and stakeholders in the sector.

Prof John Momoh, chairman of NERC, said this to newsmen on Thursday, August 22 in Abuja during the assumption of office of the new minister of power, Sale Mamman.

By: Samuel Mayowa

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